The council has scrapped plans to outsource its environmental services to private firm Enterprise.

The move means that services such as bin collection, recycling and responsibility for public spaces including parks will remain with the council.

The decision came this afternoon after SNP councillors won a majority vote against their Liberal Democrat coalition partners who were in favour of privatisation. The SNPs were backed by both Labour and the Green Party, while the Conservatives supported the Liberal Democrats.

However, not all Liberal Democrat councillors were in favour of outsourcing. Councillor Gary Peacock was applauded by the public gallery for voting against privatisation, saying: “I believe that waste and parks should remain in the public sector”, but added that it wasn’t a decision he took lightly.

Today’s vote is seen as significant in keeping other council services out of the public sector.

During today’s debate, Councillor Burgess of the Green Party said: “The Liberal Democrat motion, if approved, would see a large proportion of council services handed over to the private sector.”

The privatisation plans alone have cost the council £3.6million over the last two years, but the council’s director of Services for Communities, Mark Turley – who last year was paid £120,513 – said that a positive vote could have saved the city £27 million at a time that serious cuts are having to be made.

Councillor Mowat of the Conservatives warned councillors before the vote: “If you vote against Enterprise, you can go and justify it to the people who lose their jobs next year.”

There are now unconfirmed reports that the vote may lead to a collapse in the Lib Dem/SNP coalition.